Singapore Court Bans Sale of NFTs from BAYC Collection Due to Ownership Disputes

  • Singapore court recognizes NFTs as virtual property
  • Now there is a trial about who owns a rare token from the BAYC collection
  • This sets a precedent for subsequent cases in which NFTs will already be classified as digital property.

Last Friday, May 13, the Supreme Court of Singapore issued a ban on the alienation of a rare token from the Bored Ape Yacht Club collection. The former owner was able to defend his right to NFT, which sets a precedent for future proceedings.

The essence of the case is that the creditor illegally withheld the token, which was previously left as collateral. The decision of the court may be the necessary step, followed by the recognition of NFT as virtual property.

The plaintiff is a certain Janesh Rajkumar. Previously, he took out a loan secured by a token codenamed “№2162” from a user with a nickname “chefpierre”.

Janesh repeatedly took out loans, but each time he indicated that he did not want to give up ownership of the token. NFT is indeed quite rare, especially since it has the potential for a unique mint.

As a result, the former owner was unable to repay the loan on time, and the token was taken from him. Now he insists that his property was alienated illegally.

And the court made concessions. He banned the sale of the NFT until the ownership of the parties to it was clarified. This sets a precedent for subsequent proceedings in which the tokens will already appear as virtual property.

A similar incident happened in China. A court in Shanghai recognized BTC as virtual property under the protection of the law. Therefore, it is now impossible to confiscate cryptocurrency in the country just like that.

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